* The final Fannie Mae LIBOR values were released on June 28, 2007.
Starting from August 1, 2007 we offer the Mortgage-X
Monthly LIBOR index as a replacement for the Fannie Mae monthly LIBOR.

Q. What is the official FNMA LIBOR replacement index?

A. There is no 'official' replacement. Fannie Mae
has advised that lenders should 'consult their own counsel' regarding the appropriate replacement index for
the original Fannie Mae LIBOR*.

* Having said that, Fannie Mae provides a methodology to come up with a substitute index value.
Thus, the 1-Month Fannie Mae LIBOR Rate is replaced with the 1-Month LIBOR as published in the Wall Street Journal on or after the 25th day of each month.
The 3-, 6-Month or 1-Year Fannie Mae LIBOR Rate is replaced with the 3-, 6-Month or 1-Year LIBOR as published in the Wall Street Journal on the first business day of each month.

Besides the 'Fannie Mae recommended', there are
several other replacements available, including the Mortgage-X
Monthly LIBOR**.

** The Mortgage-X LIBOR is based on the corresponding LIBOR index
quoted in the Wall Street Journal (print edition) and is computed by averaging the past month's daily rates of the underlying
WSJ LIBOR.

Q. Fannie Mae has its own LIBOR and the Wall Street Journal has their own LIBOR, right?

A. No. The Wall Street Journal does not have it's own LIBOR. They publish yesterday's BBA LIBOR.

Q. What is BBA?

A. British Bankers' Association. The BBA LIBOR is compiled by the BBA daily and is released on or shortly after 11.00 AM
each day (London time).

Q. If the Wall Street Journal (print edition) publishes only yesterday's LIBOR, should I visit the BBA website for the current (today's) LIBOR?

A. No. On the BBA website you will only find the BBA LIBOR rates with a
2-month
delay.

A. The Wall Street Journal
(print edition) publishes yesterday's BBA LIBOR. The print edition of the WSJ is generally the
official source of the
index.

Both Bloomberg and the online version of the Wall Street Journal
show the index one day prior to the print edition of the Wall Street
Journal, i.e. the online version of the Wall Street Journal (WSJ website)
publishes today's BBA LIBOR, and the Bloomberg website also publishes today's BBA
LIBOR.

Q. I have an ARM loan and my interest rate is due to change tomorrow. Which LIBOR do I need: today's or yesterday's?

A. You need neither today's nor yesterday's LIBOR. Most lenders use the most recent index figure available as of the date
45
days prior to a scheduled interest rate change date.

In the past, one could visit the BBA website and download the BBA LIBOR rate as of the date
45 days before your
scheduled interest rate change date*.

* You cannot download the BBA LIBOR rate as of the date
45 days before your
scheduled interest rate change date currently, as on the BBA website you can only find the BBA LIBOR rates with a
2-month
delay.

Q. What's the difference between the BBA LIBOR and the Fannie Mae LIBOR?

A. Each Fannie Mae LIBOR index (there are 5 of them: 1-month, 3-month, 6-month, 1-year, 12-month avg. of 1-month LIBOR) has only
monthly values. The index is determined from information that is available on the second to last business day of each month.

The 15 BBA LIBOR rates (provided in ten currencies) are compiled by the BBA
daily and released to the market shortly after 11.00am
London time each day.

Q. Can I compute the Fannie Mae LIBOR based on the BBA
LIBOR?

A. Fannie Mae doesn't disclose their methodology and how their rates (if at all) are related to the BBA LIBOR rates.

Q. Is it possible to compute the Mortgage-X LIBOR based on the
BBA LIBOR?

A. Yes. Each Mortgage-X monthly LIBOR index is based on the corresponding LIBOR index quoted in the Wall Street Journal
(they post yesterday's BBA LIBOR) and is computed by averaging the past month's daily rates of the underlying WSJ LIBOR.

Q. Can you provide historical data on the LIBOR since inception?

Some historical BBA LIBOR rates are posted on the BBA
website (and if you don't know their website address, you can try to Google
them).

We also compile monthly historical values for the average of the London Interbank Offered Rates (LIBOR)
for 1-month, 3-month, 6-month and 1-year U.S. dollar denominated deposits, as posted by Fannie Mae (FNMA). Data are available beginning from September,
1989.FNMA LIBOR History

Q. Is the 12-month daily historical values an average figure? Because both the disclosure and note that I have
refer to 'the average of interbank offered rates for one year US dollar-denominated deposits in the London market ('LIBOR') as published in the WSJ'.
Should I use the 12-month daily figure to determine my mortgage rate?

A. The LIBOR as published in the WSJ, that actually is yesterday's BBA (British Bankers' Association) LIBOR, is an average
figure by definition*.

* The BBA maintains a reference panel of several contributor banks. Their market quotes are used by the BBA to construct the
BBA LIBOR: the top quartile and bottom quartile market quotes are disregarded, the middle two quartiles are averaged. The resulting average rate
is the BBA LIBOR rate.

To determine your mortgage rate you should use the 12-month daily WSJ LIBOR value, plus the exact number of days prior to your interest
rate change date used by your lender to determine the date on which the most current index value is
selected.

..... <snip> the BBA place no
restraints on the redistribution of our data that is over seven days of
age. We do ask, but only as request that the data is attributed to the
BBA and a link to our website provided (www.bba.org.uk) but this is
completely optional.....

When Peter Denton sent you the below letter, it was BBA policy that any data older than 7 days was freely distributed on a no-fee basis.....

we changed our policy .....

We apologise for any inconvenience caused and know you were acting in good faith in your display of the rates; however,
our company policy has changed and we must now ask that Mortgage-X either cease their display of the rates .....

Many thanks,
Michael

Q. I need to compound the LIBOR since 1972 on a six monthly basis. I am having trouble finding the historic rates for my calculation and would greatly
appreciate your assistance.

A. On the BBA website it is stated that ' ... BBA LIBOR fixings did not commence officially before 1 January 1986 ... '. It is further
stated that ' ... due to the specific methodology of calculating BBA LIBOR it is not possible to reconstruct rates before the official fixings commenced ... '.
The historical data files posted on the BBA website make up the entire back history of BBA LIBOR and ' ... there is no BBA LIBOR data available before this
point ... '.Source: BBA.

Historical Graph (Fannie Mae LIBOR)

The following graph reflects the movement of the 6-Month Monthly Fannie Mae LIBOR vs. 1-Yr CMT and 11th District COFI:

Daily values for the average of the London Interbank Offered Rates (LIBOR) for 1-month, 3-month, 6-month and 1-year U.S. dollar denominated depositsas
published in The Wall Street Journal (WSJ), 1986 - present. { Obtaining Permission to Reproduce
}

Mortgage Professionals Offering LIBOR-indexed Loans:If you are looking for a LIBOR-indexed ARM and need more information
or advice, we invite you to take advantage of our database of the most competitive lenders available. Just complete a short loan request form and the best lenders in your local area will contact you with
their rates and fees.